Exit Strategy? - Close of Bar?

[TJZ]

#1. Never trade the open bar. Madness.

I read this in another topic and it spurred me on to ask this question to you guys.

Hopefully thebramble can weigh in here as he made the comment!


Could the statement above apply to exits as well?

My whole trading system is built around closes of bars, where it closes, what it closes above\below etc but my exit is always set and it can be touched on any open bar. (I would say most people follow this method?)

Recently I have been noticing if I was to wait for a close of the bar beyond my exit level, I would the majority of the time be able to bank more profit if I were to:

1) Take profit at the close of the bar.

2) Move stop to original tp (tight) and hopefully it doesnt come back.

Obviously I will miss some winners from spikes but looking back over the last 100 setups this is a very rare occurence.

Trading the 1 hour timeframe.

Would love some insight from the experienced!

Thank you

T

 

[wackypete2]

If you are trading the H1 bars that a lot of time for a runaway bar. Suppose the bar moves 50 to 100 pips against you while you are waiting for it to close? Probably not a big deal if you are using very low leverage though. You have to determine how long or how many trades on average would it take you to make that back if that happens.

Peter

 

[NVP]

If you are trading the H1 bars that a lot of time for a runaway bar. Suppose the bar moves 50 to 100 pips against you while you are waiting for it to close? Probably not a big deal if you are using very low leverage though. You have to determine how long or how many trades on average would it take you to make that back if that happens.

Peter

Petes right...........depends on Timeframe's ATR hit being taken at the time

N